Bitcoin whales lose interest, is this a precursor to a drop to $50,000?

The movement and accumulation of crypto whales are two of the catalysts for Bitcoin price increases. Although the main whales are I’m still buying the dipNetwork data indicates a general decrease in accumulation momentum, which suggests that its conviction may actually be waning.

According to IntoTheBlock, an on-chain analytics firm, Bitcoin whale accumulation volumes have declined substantially with each buying cycle over the past month. This decline in whale accumulation may be worrying for investorsespecially since the price of Bitcoin is now trying to stay above $60,000.

Whale Appetite for Bitcoin Declines According to Network Data

Whales, or large investors who hold more than 1,000 BTC, have accumulated heavily since the beginning of the year, especially during market dips. This accumulation has largely helped maintain Bitcoin’s bullish sentiment and prevented huge price drops. However, IntoTheBlock recently revealed an interesting pattern among these whale wallets in each accumulation phase.

The largest accumulation occurred between March 5th and 7th, when these wallets acquired more than 120 thousand BTC. Each successive price drop, however, saw less accumulation than the previous one. Particularly, Bitcoin’s recent drop to $56,000 failed to attract notable whale accumulation. This drop in buying and selling activity indicates that whales may have lost some interest or appetite in accumulating more Bitcoin in the short term.

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Precursor to a drop to $50,000?

Diminishing conviction among Bitcoin whales has raised the question of whether Bitcoin could return to being a full bearish momentum. These concerns are particularly valid considering that some analysts believe Bitcoin may have reached its peak in this cycle.

As IntoTheBlock noted, prices rose shortly after each accumulation this year. While reduced whale buying activity may stall price increases in the short term, it is not a clear sign that Bitcoin is headed for a major price drop. However, if the trend continues for a few more months, it could signal lower demand and a weakening of the bull market.

According to the “In/Out Of Money Metric”, there is still strong resistance volume between $59,000 and $61,000. A drop below this range would again cause 552,220 addresses to lose. In fact, although a drop to its level would be painful for many holders, most crypto analysts remain bullish on Bitcoin long-term perspectives.

At the time of writing, Bitcoin is trading at $61,488. The crypto recently recovered around $57,500 and is up 7.4% in the last seven days. According to analyst Marco Johanning, US$57 thousand is an important level of support for Bitcoin. He noted that while a break below $57,000 could lead to further drops to $52,000, the crypto market is still very bullish on Bitcoin.

BTC price struggles to hold $61,000 support | Source: BTCUSD on Tradingview.com

Featured image from FameEX, chart from Tradingview.com

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